Lack Of Prime Stock Puts The Brakes On Industrial Market Activity In Q2
Take-up of industrial space in Dublin in Q2 was down 21% on the previous quarter due to a shortage of quality stock in the market, according to a new report from JLL.
The agency’s research indicates that 561K SF was leased or sold in 47 deals done between April and June. This compares with 714K SF and 54 transactions completed in the first three months of the year.
All five of the biggest deals of Q2 were lettings and between them accounted for over 50% of space taken. The largest of these was for a 101K SF unit on Orchard Avenue in Citywest Business Campus.
However, the majority of the deals — 68%, or 32 of the 47 transactions — involved spaces of less than 10K SF.
On the money side of things, JLL said prime rents increased to €9.25/SF for new warehouse stock during Q2, up from €8.75/SF in the first quarter. Secondary rents, meanwhile, were unchanged at between €6.50/SF and €6.75/SF.
JLL is expecting rent levels for newer, prime stock to increase at a faster pace than for older buildings. This, it said, will be exacerbated by the current shortage of in-demand, quality stock.
